PayPal has pulled out of the Libra Association, Facebook’s consortium to oversee its upcoming digital currency Libra. Rising regulatory concerns surrounding Libra and increased scrutiny have caused the global payments leader to announce its withdrawal from the social networking giant’s ambitious plans to launch its own digital currency.

According to a formal statement put out by the company, “PayPal has made the decision to forgo further participation in the Libra association at this time and to continue to focus on advancing our existing mission and business priorities as we strive to democratise access to financial services for underserved populations.”

The Libra Association was initially comprised of 28 multinational and non-profit organizations from around the world which had pledged at least $10 million each to become members. The non-profit consortium thus created was expected to oversee Libra and validate each node that would have formed a part of the private blockchain network.

This latest development spells more trouble for Facebook which is already facing the heat from the European Commission over deeper exploration into the aspects of risks associated with financial stability, money laundering and data privacy. There is also an increased possibility of other companies, especially Visa and Mastercard, pulling out of Facebook Libra as well.